Woodside's Louisiana LNG: Attracting Global Partners

Woodside Energy, Australia's leading LNG player, is in advanced talks with at least three potential partners for its Louisiana LNG project, according to industry sources. The project, located in Calcasieu Parish, Louisiana, is an under-construction, pre-final investment decision (FID) LNG production and export terminal with a total permitted capacity of 27.6 million tonnes per annum. With its strategic location, competitive pricing, and schedule certainty, Louisiana LNG is poised to become a major player in the global LNG market.

Woodside's Louisiana LNG project is strategically positioned on the Gulf Coast, providing easy access to global LNG markets. This location allows the project to supply LNG to the growing global market while delivering value to shareholders under Woodside's capital allocation framework. The project's full permitting, which goes until the second quarter of 2029, ensures that the developers have the necessary approvals to proceed with construction and operation, reducing potential delays and uncertainties.

Bechtel, a renowned engineering, procurement, and construction (EPC) contractor, is involved in the project, further enhancing its credibility and reducing investment risks. Bechtel's revised lump sum turnkey EPC contract provides competitive pricing and schedule certainty for the project, with a forward cost for the foundation development of $900-960 per tonne. This pricing and schedule certainty make the project more appealing in the current uncertain market environment for competing developments.

Woodside's Louisiana LNG project is an attractive investment opportunity for potential partners due to several specific factors. First, the project is fully permitted, with US Federal Energy Regulatory Commission (FERC) approval that goes until the second quarter of 2029. This ensures that the project has overcome significant regulatory hurdles, reducing risks for potential partners. Second, the project's competitive pricing and schedule certainty make it an appealing investment in today's uncertain market environment. Third, Bechtel's involvement as the EPC contractor instills confidence in potential investors and partners, as they are known for their expertise and reliability in delivering projects on time and within budget. Finally, the project's strategic location on the Gulf Coast and high permitted capacity enable it to supply LNG to the growing global market and secure long-term contracts with customers.

In conclusion, Woodside's Louisiana LNG project is an attractive investment opportunity for potential partners due to its strategic location, competitive pricing, schedule certainty, full permitting, and Bechtel's involvement as the EPC contractor. As Woodside continues to target final investment decision readiness by the first quarter of 2025, the project is well-positioned to become a major player in the global LNG market, attracting global partners and investors.